Volusia County Council OKs Orange City redevelopment plan

Thursday

Jun 19, 2014 at 8:19 PMJun 19, 2014 at 10:33 PM

By MARK HARPERmark.harper@news-jrnl.com

DELAND — Orange City officials celebrated Thursday after three years' work for an agreement with Volusia County to redevelop its downtown.The County Council voted 6-1 to accept Orange City's proposed Community Redevelopment Area, or CRA, a tax-increment tool that's used in 15 other communities across the county. This is the first in southwest Volusia.The vote means for 20 years, the county and city will each take some property tax revenue from the CRA's boundaries and put it into a separate fund to be spent on projects designed to end blight. Some examples: sewer and stormwater systems, new sidewalks, landscaping and signs.“This is the beginning of a great plan for the core city,” said Jamie Croteau, city manager. “I'm thankful the council saw it through. This is the beginning of more economic development and improved safety for this area.”The city projected Volusia County's contribution will start with $12,000 in the first year and will gradually grow to about $100,000 in 2022 and upward in the years that follow.CRAs work by setting a base property value when they're established; then, as values increase over the years, the tax revenue generated above that baseline goes back into redevelopment projects in the district's boundaries.Glenn Storch, an attorney presenting the plan for Orange City, said the county's contribution in Orange City pales in comparison to other cities' CRAs, including New Smyrna Beach, which is getting $1.1 million this year, and Holly Hill at $750,000.“I consider the CRA a major investment. You put your money in, and it comes back out,” Storch said, pointing to New Smyrna Beach, where the value of Flagler Avenue near the beach has grown by more than $1 million.Volusia County Chair Jason Davis voted against the plan, saying he doesn't believe CRAs work as they're intended.While he agrees the value of property along Flagler Avenue has grown, he said he hasn't seen the same results on Canal Street, also part of the city's CRA.“I've got problems with CRAs,” Davis said. “All that Canal Street money we put in there and there's no people in the streets. I go at 5 in the afternoon, 11 in the morning ... and there are five or six people, usually in the same place.”Davis said he favors a different approach to investing public money in infrastructure and projects designed to fight blight, but he was outvoted.A couple of other council members, Pat Northey and Pat Patterson, expressed some reservations about CRAs but ultimately voted for the Orange City plan. Other council members were impressed with the city's presentation.There was also a parade of support from across Volusia, but especially West Volusia, where the mayors of Orange City, DeLand and DeBary all spoke in favor, while Deltona's vice mayor also backed the plan.Several residents of Orange City urged passage of the CRA, some in the strongest terms they could muster.Henry Durica, a resident for 24 years, said he counted more than 50 “for rent” or “for lease” signs along U.S. 17-92 in the CRA boundaries, and noted that in the last year, the city had more than 200 foreclosures.“We don't want a CRA,” he said, “because we need a CRA and we need it now. We are tired of waiting and waiting.”The city's presentation noted that Orange City has the lowest per-capita median income in Volusia County, $19,653, while also noting four recent fatal car-pedestrian accidents on U.S. 17-92 in the downtown area in recent years.Orange City Councilman Bill Crippen, who lives downtown, said he's seen a dramatic downturn over the last 40 years.“I remember when downtown Orange City was a vital area, with spunk and pep and a lot of people, a lot of pedestrians, walking places,” Crippen said. “That went away. We now have a massive highway.”And, he added, few reasons for cars to slow down or park.“In 20 years, ... I won't be on the City Council any more,” he said. “Hopefully, I'll be sitting on the front porch seeing what the CRA has been able to produce.”In all, 19 people spoke during the public-comment period, with none opposed to Orange City's plan.County Councilwoman Joyce Cusack responded to the residents by making the motion to approve the CRA.“I've heard you loud and clear,” she said. “You talk about a return on investment in CRAs. You demonstrated that in your presentation.”The redevelopment area will cover three miles along U.S. 17-92, about 793 acres, all but two of which are developed, and 72 percent of which is commercially zoned.